Assume a stock currently traded for s 0 92 assume further, Ask an Expert

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Assume a stock, currently traded for S 0 = 92. Assume further continuously compounded annual risk free rate of (r ) of 0.018.

1. What would be the price of a put option on this stock expiring in half of a year, and strike price of 98? Assume volatility of the stock being 0.2.

2. What would be the price of the call option with the same maturity, strike price and volatility?

Could you please write also the formula.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92758217

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